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Message: Question on Silver...

Question on Silver...

posted on Jun 28, 2008 04:03PM

Does anyone in this forum honestly believe that silver, given the current maket conditions and current metals prices, will remain more than 2 1/2 times below its all time nominal high??

I sure don't! Eric King has recently interviewed James Dines and Ted Butler. Mr. Dines has Silver going to $100 possibly as high as $150. Ted Butler, would not put a price on where silver is headed, but stated that it is still early, and given market fundamentals, silver could explode higher at any moment. He encouraged people to read his article titled, The Silver Challenge, and stated that he would, 'bet dollars to doughnuts', that anyone who goes through it, if they haven't already, will be buying silver. Why is this important? Kimber has silver, and lots of it. @ 46,000,000 ounces thus far and will prove up a bunch more upon the completion of this drill program. I think Kimber will go when silver goes, if not earlier, but definitely when silver rockets up. My reasoning, the playing field, which is already narrow, is going to become much more so, with $50 silver. The big boys will not just be looking for any junior mining company, but those that have proven resources in the ground, huge blue sky potential, and a bymetallic, (specifically gold and silver), nature. That's Kimber!!!

Something to keep in mind. Let's say 'Naked Short Man', shorted the stock at $1.00 and did so for 5 million shares of which 4 million are counterfeit. Right now, with Kimber at @ $1.50, they would be in the hole $2.5 million, if they covered the whole mess. This is nothing for a bank like RBC with over $630 billion in assets. If the stock drops to zero, they have only gained $5 million, a pittance for this size of company. The potential for loss however in a short position is infinite, and will accumulate exponentially, and very quickly. Let's take a look at a very doable $6 Kimber. Having shorted the company at $1 for 5 million shares, their $2.5 million loss has now turned into a $25 million loss. Hike a acquisition proposal in there and we could see $10 Kimber...and 'Naked Short Man', has greatly displeased his master. I think shorting at $1 with Kimber now at $1.50 gives these idiots some hope that they can break even. A correction in gold, which was supposed to happen this Summer, could be just the catalyst to put Naked Short Man closer to breaking even and keeping his job. Interestingly the correction in precious metals is conspicuously absent this year, at least so far. Once the PMs start their Fall ascent, look for the Naked Short Man to cover. The Genie is out of the bottle and they have lost the cork!!!

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